Canola Quick Bytes

A supplement to U.S. Canola Digest

Capitol Hill

When it became obvious in mid-May that President Trump was instructing the U.S. Department of Agriculture (USDA) to provide another trade aid package to U.S. producers for the 2019 crop year, the U.S. Canola Association (USCA) and Northern Canola Growers Association (NCGA) again called upon U.S. Secretary of Agriculture Sonny Perdue, USDA staff and members of Congress to include canola in the Market Facilitation Program. Concern that the suddenly announced program would affect planting decisions if the aid was not provided to all competing crops was explained to CNBC by USCA Producer Director Ryan Pederson: “I need to be making my cropping practices on what’s best for the land, what’s best for our long-term rotation.” Canola prices have declined in lock-step with soybeans and suffered even greater price and demand destruction due to the blockage of Canadian canola imports into China, noted the NCGA. Advocacy turned into action on May 23, when the USDA announced commodities left out of trade aid last year will be included this year to prevent planting and market distortions. USCA and NCGA representatives met with the USDA on May 30 to provide further data about the relationship between canola and soybean price declines and to urge the USDA to provide equitable loss payments for all crops.

The USDA will provide up to $16 billion in programs for the trade aid, which correlates to the estimated impact of unjustified retaliatory tariffs on U.S. agricultural goods and other trade disruptions, according to a May 23 USDA press release. These programs will assist farmers while Trump works to address long-standing market access barriers. Market Facilitation Program payments will be based on a single county rate multiplied by a farm’s total plantings to those crops in aggregate in 2019. Per acre payments are not dependent on which crops are planted in 2019. Total payment-eligible plantings cannot exceed those of 2018. Payments will be in three tranches, with the first starting as soon as practical after the Farm Service Agency crop report is completed by July 15 and subsequent tranches in November and early January pending market conditions and trade opportunities.

The NCGA also advocated U.S. Trade Representative Robert Lighthizer and North Dakota leaders for canola oil to be granted the same tariff reductions as Canada obtained last December under the Comprehensive & Progressive Agreement for Trans-Pacific Partnership (CPTPP). This would result in the ability of U.S. canola crushing plants to sell canola oil into Japan tariff-free by 2023. The United States is not a member of the CPTPP and Japan is one of half of the CPTPP members with which the U.S. does not have its own free trade agreement.

The American Farm Bureau Foundation (AFBF) calls for prompt passage of the Biodiesel Tax Credit Extension Act of 2019, which has been in limbo for more than a year. “In many rural areas of the country, production facilities are a driving force in local economies that provide employment opportunities and broaden the local tax base,” wrote AFBF President Zippy Duvall in a letter to House members. “In addition, all citizens, including farmers who are large fuel consumers, benefit when our nation reduces its dependence on unpredictable international oil markets.” The USCA also strongly supports Congress passing bill H.R. 2089.

The U.S. Department of Homeland Security has Chemical Facility Anti-Terrorism Standards that identify and regulate high-risk facilities possessing hazardous chemicals, such as pesticide manufacturing plants. The standards prevent terrorist use of chemicals through the regulation, inspection and enforcement of chemical infrastructure security requirements. For questions about assessing security vulnerabilities and implementing security plans, call 866-323-2957 or e-mail csat@hq.dhs.gov.

Agronomy

Canola acreage and yields continue to gradually climb in the southern U.S. In AgWeb, farmers make the case for canola in Arkansas, Kentucky and Tennessee. Though canola plantings in these states are currently low (1,500 acres), production is high with an average of 50-70 bushels per acre. “We know wheat acres are down about 90 percent since 2013 in this region, so there is big need for a substitute crop,” says Duane Dunlap of Archer Daniels Midland. “Certainly, canola may bring a better return than wheat.”

Grainews features a Q&A with Jordan Peterson, manager of agronomic services for Nutrien Ag Solutions, about the right time to apply a sclerotinia fungicide to canola. Waiting until 30 percent bloom stage is the most important tip.

Nutrition

A study published in the June 2019 issue ofAnimal Feed Science and Technology shows that canola meal stimulates high milk production in mature Holstein cows. That’s at least partly due to the amino acid methionine that canola meal supplies, according to researchers in California, who tested 530 cows.

A study at the University of Illinois found that high-protein and conventional canola meal can substitute soybean meal up to 100% without detrimental effects, Pork Business reports.
“The older recommendations were made at a time when canola contained more glucosinolates,” says Hans Stein, professor in the Department of Animal Sciences. “With the newer varieties — which have also been selected for larger seed size, less fiber and more protein — we can include more of the canola meal in the diets.” The researchers fed experimental diets to 180 cows, including conventional and high-protein canola meal, during gestation and lactation. They found no difference in body weight and nor daily feed intake.

Did you know canola oil is good for hair health? That’s because it is a good source of the omega-3 fat alpha-linolenic acid (ALA). In fact, canola oil contains the most ALA of any cooking oil.

Other Country News

There’s currently no end in sight for Canadian canola producers as the icy stand-off between Canada and China continues. After Canada detained the Chinese CFO of Huawei Technologies, authorities in Beijing halted canola imports, citing pests without proof. China imports 40 percent of Canada’s canola crop and negative impacts are already being felt: the price of canola has gone down $2 per bushel compared to last fall and farmers planted 1.5 million fewer acres from 2018. “We’ll certainly be putting a lot less canola in, that’s for sure,” says Jack Froese, farmer director of the Manitoba Canola Growers Association, to the CBC. “At average yields, it’s break-even at best.”

Meanwhile in Ottawa, Canadian government officials are working out the best ways to help canola producers. On the docket includes a loan limit increase from $400,000 to $1 million CDN, with up to $500,000 interest-free, KTIC radio reports. “We stand shoulder-to-shoulder with Canada’s canola producers and farm families across the country and we will continue to listen to their needs,” says Agriculture Minister Marie-Claude Bibeau.

Latest Industry News

Bayer, which now owns Monsanto, was hit with the biggest verdict against it to date over glyphosate when a jury ruled for $2 billion in damages. The jury ruled in favor of an elderly couple who claimed to use the glyphosate-based herbicide RoundUp for three decades and both were diagnosed with non-Hodgkins lymphoma four years apart. In April, a jury unanimously ruled in favor of a groundskeeper who said RoundUp also led to his cancer diagnosis. There are thousands of similar pending cases, CNN reports. Bayer has vowed to fight the verdicts.

There could be some good news on the horizon for canola production in Oregon. The state limited canola to 500 acres in a 2013 bill, but now the Oregon Department of Agriculture proposes ‘“isolation zones,” which would open up 1.5 million acres for canola planting, reports the Capital Press. These zones intend to prevent cross-pollination with Brassica and specialty crops, a main concern among canola opponents in the state. The Willamette Valley Oilseed Producers Association supports the proposal.

NCGA summer canola research tours will be at the North Central Research Extension Center in Minot on Wednesday, July 17 (9 am-12 pm) and Langdon Research Extension Center on Thursday, July 18 (8 am-1 pm). The Minot tour will cover insect and disease management and fertility and the Langdon tour disease research, breeding trials and other agronomy updates. Free lunch will be provided at both. Following the Langdon tour, the NCGA will host an industry-sponsored golf tournament at the Langdon Country Club.

An updated, pocket-size Canola Production Field Guide is now available from the NCGA. It has information on hybrid selection, growth and development of plants, canola in crop rotations, field selection and preparation, planting dates, seeding rates, frost tolerance and damage, soil fertility, weed control, pest and disease management, swathing, harvesting, drying and storage. The guide also lists resources with additional information and includes photos of agronomy issues, weeds, insects and diseases. North Dakota growers can obtain a copy while supplies last from North Dakota State University Extension county offices and Research Extension Centers by calling 701-231-7883 or emailing NDSU.DistributionCenter@ndsu.edu. The cost is $3 per copy plus a small shipping and handling charge.

About the USCA

Farmers for a Sustainable Future is a new coalition representing U.S. farmers and ranchers who are committed to producing food in a sustainable way. As one of nine commodity groups in the coalition, the USCA is promoting soil health, conserving water, enhancing wildlife, efficiently using nutrients and caring for animals. Such efforts in the past decade have already paid off as U.S. farms are producing more food and fiber without more resources while conserving water, soil and energy as well as enhancing biodiversity. Greenhouse gas emissions are also going down as farmers use more clean, renewable energy. Currently, 15 percent of all U.S. farmland is used for conservation and wildlife habitat.

Want to promote your products or services to canola producers and industry members? Visit the USCA advertising sections online to find specs, deadlines and rates to advertise in this monthly e-newsletter or on UScanola.com.